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Operator picked for Thousand Oaks first medical marijuana dispensary

The Thousand Oaks City Council selected Legendary Organics over two other finalists to operate a marijuana dispensary in a remote industrial location.

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Thousand Oaks' first medical marijuana dispensary has been approved to open at this new, remote industrial park at 2712 Conejo Center Drive, Newbury Park. The dispensary, to be operated by Legendary Organics, is expected to open in coming months.(Photo: MIKE HARRIS/THE STAR)Buy Photo

At the conclusion of a rigorous, months-long evaluation process, Legendary Organics has been selected by the Thousand Oaks City Council to operate the city’s first medical marijuana dispensary.

Thousand Oaks-based Legendary, one of three finalists, got the nod over the other two, DBO Investments and Leaf Dispensary, in a 4-1 vote Tuesday night. Dissenting council member Rob McCoy favored Leaf.

The council authorized City Manager Andrew Powers to execute an operations agreement with Legendary, including a community benefit fund contribution, and to bring it back to the council for approval at its Aug. 28 meeting.

Legendary plans to open its dispensary in a new, remote industrial park at 2712 Conejo Center Drive in Newbury Park, a location removed from residences. The city’s community development director, Mark Towne, said the dispensary will probably open within the next year.

In city rankings of the three finalists, Legendary scored the highest at 88.93 percent, followed by El Segundo-based DBO at 82.46 percent and Leaf at 81.46 percent.

“We’re pleased with the ultimate outcome of the city’s process. We recognize that we were up against some tough competition. We believe the city’s process was fair and transparent.”

Patrick Spillane, co-owner

The rankings were based on such criteria as proposed location, business plan, neighborhood compatibility, safety and security plan, qualifications of principals and environmental benefits.

“We’re pleased with the ultimate outcome of the city’s process,” Legendary co-owner Patrick Spillane said after the council’s vote. “We recognize that we were up against some tough competition. We believe the city’s process was fair and transparent.

“And we appreciate the effort that staff did in undertaking such a complicated effort that, for a city like Thousand Oaks, is quite an evolutionary advancement,” said Spillane, who owns Legendary with his stepbrother, Sean Cassar.

Even though Legendary’s application to the city lists Westlake Village Mayor Pro Tem Ned Davis as a third owner, Spillane said Davis isn’t an owner, but the company’s director of operations.

Spillane said Davis was identified in the application as an owner because “in an abundance of compliance, we actually identified him in the city application process because people who direct the business should also be identified.”

Spillane’s stepfather and Cassar’s father is Hugh Cassar, who founded Moorpark-based Kretek International, which describes itself as “America’s No. 1 importer, marketer and distributor of specialty tobacco products.”

Before voting, council members said it was a tight race between Legendary and Leaf. DBO had been eliminated by the council from contention earlier in the meeting after its officials were no-shows.

“I think we have two fine applicants here,” said Councilman Al Adam. “It’s a close call.”

“When we started this whole conversation, we were looking for essentially the most remote location possible in an industrial area and that’s Legendary. From an objective evaluation, there’s just no question.”

Mayor Andy Fox

But Adam, Mayor Andy Fox and Council Member Claudia Bill-de la Peña said Legendary’s proposed location was superior because it was more isolated.

“When we started this whole conversation, we were looking for essentially the most remote location possible in an industrial area and that’s Legendary,” Fox said. “From an objective evaluation, there’s just no question.”

Legendary’s location “is far superior” to Leaf’s, he said. “It’s not even close.”

Bill-de la Peña said that Leaf’s proposed location 2400 Willow Lane in Thousand Oaks, while also in an industrial zone, was “much more central.”

Fox said the second factor in his decision to vote for Legendary was that it was ranked the highest of the three finalists.

While Leaf has more experience in the medical marijuana industry than Legendary, Councilman Joel Price said “business acumen is something that needs to be weighed regardless of what business you’re in” and “Legendary is a very highly-rated business.”

“I think all things being equal, they (Legendary) rise to a point above,” Price said.

In its application, Legendary states that “we are uniquely qualified to operate a medically focused cannabis retailer ... with a ’best in class’ history and decades of experience in the sales and distribution of highly regulated specialty tobacco and food products.”

Legendary plans “to forge a 21st century organization focusing on the emerging health and wellness benefits of the cannabis and industrial hemp plants — which we believe will revolutionize personal well-being in the coming decades.”

McCoy said Leaf’s experience was the determining factor in his dissenting vote.

“I prefer going with experience,” he said. “I’m all for you guys.”

He said in an interview Thursday: “Simple reason why I voted the way I did is because I really felt that the experience they possessed far outweighed the location.”

And he questioned Leaf’s ranking behind Legendary and DBO.

“I’m not sure the reason they scored the way they did,” he said.

“He was Johnny-on-the-spot. He did not need to defer to consultants or staff or secondaries. There was no question he knew how to run a business.”

Tim Hagel, Thousand Oaks police chief

Before the council’s vote, Fox, too, had questions about the rankings.

“We’re not getting clarity on why you rated one candidate higher than the other,” he said, turning to the city’s cannabis consultant and members of the city committee that produced the rankings.

Thousand Oaks Police Chief Tim Hagel, a member of the committee, replied that “what set (Legendary) apart right away” during an appearance before the committee was Spillane.

“He was Johnny-on-the-spot,” Hagel said, “He did not need to defer to consultants or staff or secondaries. There was no question he knew how to run a business.”

The four council members said the contributions did not influence their votes for Legendary.

“That was four years ago. In fact, I forgot about it,” Bill-de la Peña said with a laugh.

David Moss, DBO Investments’ vice president of operations, said Friday that company officials did not attend Tuesday night’s council meeting because “we knew we weren’t going to get it. We did not feel very confident based on the rankings.”

DBO’s proposed location, 711 Rancho Conejo Blvd. in Newbury Park, also in an industrial zone, was opposed by some people associated with the adjacent Art Trek, a nonprofit art studio, on grounds that the studio regularly services many children and teens. They lauded the council’s decision not to select DBO.